Posted on: 03rd Jan, 2010 09:01 am
Ok, I tried to get a loan modification two times with GMAC. Here's my situation:
Hubby and I are furloughed three days per month because we work for the state of California. We have a first and second. The first (ASC) agreed to modify the loan from all interest to a regular loan. However, the payment went up $154. We paid down a bill and agreed.
GMAC tells us, they can't do anything for us because we are current on our loan. So, we got behind and then they said we had the ability to pay our loan so they weren't going to modify it.
Just like most people, we owe more than the house is worth. The value of the house is not even enough to pay the first. We have a default notice from GMAC and hubby wants to file bankruptcy. I don't want to move for at least another 9 years when we retire.
Our credit card debt is only about 10% of our income. We have a couple of car loans, a student loan, and a line ofcredit loan. I don't think we would pass the means test for chapter 7 but chapter 13 doesn't really make sense to me.
I guess I would just like to know, if GMAC does foreclose, what will happen. I don't see them making ASC agree to sell the house. The loan has a balloon payment and the representative had the nerve to tell me to refi when they know its impossible. They make me want to walk away but thats not in my nature. So, what can I do?
Hubby and I are furloughed three days per month because we work for the state of California. We have a first and second. The first (ASC) agreed to modify the loan from all interest to a regular loan. However, the payment went up $154. We paid down a bill and agreed.
GMAC tells us, they can't do anything for us because we are current on our loan. So, we got behind and then they said we had the ability to pay our loan so they weren't going to modify it.
Just like most people, we owe more than the house is worth. The value of the house is not even enough to pay the first. We have a default notice from GMAC and hubby wants to file bankruptcy. I don't want to move for at least another 9 years when we retire.
Our credit card debt is only about 10% of our income. We have a couple of car loans, a student loan, and a line ofcredit loan. I don't think we would pass the means test for chapter 7 but chapter 13 doesn't really make sense to me.
I guess I would just like to know, if GMAC does foreclose, what will happen. I don't see them making ASC agree to sell the house. The loan has a balloon payment and the representative had the nerve to tell me to refi when they know its impossible. They make me want to walk away but thats not in my nature. So, what can I do?
Hi sunshynny,
If you keep on defaulting on your mortgage payments with GMAC, then the lender has the rights to foreclose the property. However, in that case, they will have to satisfy the first lender. However, in most cases, the second lender does not foreclose the property rather they charge off the loan to a collection agency who will in turn collect the dues from you. As your second lender has agreed to a modification, I would suggest you to keep on negotiating with your lender and try to convince him for a loan modification.
Thanks
If you keep on defaulting on your mortgage payments with GMAC, then the lender has the rights to foreclose the property. However, in that case, they will have to satisfy the first lender. However, in most cases, the second lender does not foreclose the property rather they charge off the loan to a collection agency who will in turn collect the dues from you. As your second lender has agreed to a modification, I would suggest you to keep on negotiating with your lender and try to convince him for a loan modification.
Thanks
ok, i understand the lender's rights. its not a simple matter to negotiate with these people. they don't really negotiate. when they told me no the first time, they told me not to reapply unless my circumstances changed. at the time, i was receiving two furlough days. when it changed to three, i reapplied and got the same answer.
what about using a loss mitigation specialist? i know there are many scam artists but how can i tell if i've found one that is legitimate?
what about using a loss mitigation specialist? i know there are many scam artists but how can i tell if i've found one that is legitimate?
Hi sunshynny,
You can use a loss mitigation specialist in order to negotiate with your lender. It is quite difficult to know whether or not a loss mitigation specialist is a scam artist. However, there are number of attorneys who help people in negotiating with their lenders. You can contact such attorneys in order to deal with your lender.
You can use a loss mitigation specialist in order to negotiate with your lender. It is quite difficult to know whether or not a loss mitigation specialist is a scam artist. However, there are number of attorneys who help people in negotiating with their lenders. You can contact such attorneys in order to deal with your lender.
Thank you both for your responses. I've been reading some of the "stickies" and the notion of lien stripping sounds very interesting. If I am forced to file chapter 13 because of these furlough days the state keeps giving me, I think the second would be stripped as my house is not worth the balance of the first alone.
Is there somewhere I could get more information on lien stripping or should I just head straight for a lawyer?
Is there somewhere I could get more information on lien stripping or should I just head straight for a lawyer?